UK financial watchdog spells out risk for those participating in ICOs

[JollyGood]

https://www.theguardian.com/business/2017/sep/12/cryptocurrency-investors-bitcoin-could-lose-money-fca-warns

UK FCA stated: "The Financial Conduct Authority said anyone investing in ICOs should be prepared to lose all their money, with some of the schemes floated potentially outright frauds."

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[aso118]

https://www.theguardian.com/business/2017/sep/12/cryptocurrency-investors-bitcoin-could-lose-money-fca-warns

UK FCA stated: "The Financial Conduct Authority said anyone investing in ICOs should be prepared to lose all their money, with some of the schemes floated potentially outright frauds."

As long as they stick to highlighting the risks, I don't think the ICO developers will have a problem. Investors are anyway taking a big gamble by investing in ICOs and hope for bumper profits when the tokens start trading.

[JollyGood]

They only told the truth and there shouldn't be any problem as long as they don't plan to ban ICO in UK just like what China did. But it should be obvious that any investment have risk and every investor must prepare for worst case scenario.

Regulation by governments of the USA, Singapore and China by outlawing their residents or passport holders from starting ICOs or investing in them does not guarantee their citizens will stop participating in ICOs.

When I looked at several ICOs recently most have a simple notification asking for US citizens to not take part, some mentioned nothing. The US and Chinese citizens will continue to invest in ICOs until or unless there is strict regulation.

[ivrynx]

I think they are just warning people, and not let what happened to china, happened to them, since ICOs, though it is also cryptocurrency it still is differrny from bitcoin, there will be ICOs that will just take your money for theirs, like ICOs that arr saying their theirs have a value that is more than the value of bitcoin, and greed will normally take over, since it is just human nature. We still need to make researches, and join ICOs that are trustwothy, not just something you have found in the internet, saying your inital investment will double in just a day, just by that statement, it is already a scam.  We should all be aware and be more cautious in everything we invest in, since there will always be someone that will take advantage of one's ignorance. 

[Ucy]

More matured way of dealing with this sort of thing. Love the open-mind approach.
Chinese government has a lot to learn from such country rather than taking the primitive & inconsistent approaches.

[anon4250158]

UK FCA stated: "The Financial Conduct Authority said anyone investing in ICOs should be prepared to lose all their money, with some of the schemes floated potentially outright frauds."

I think this is well known to people who have been in the crypto world for any length of time.  Scams are everywhere.  You just have to do your research.  Of course, any investment is a risk, whether it's legit or not.  At least the UK isn't shutting it down and is allowing people to decide for themselves how much they're willing to risk.

[JollyGood]

I think this is well known to people who have been in the crypto world for any length of time.  Scams are everywhere.  You just have to do your research.  Of course, any investment is a risk, whether it's legit or not.  At least the UK isn't shutting it down and is allowing people to decide for themselves how much they're willing to risk.

Yes you are right. At them moment they are not subjecting ICOs to control as they deem far too few people are participating in them.

[eaLiTy]

UK FCA stated: "The Financial Conduct Authority said anyone investing in ICOs should be prepared to lose all their money, with some of the schemes floated potentially outright frauds."

This is not a shocking news to hear from watch dogs,the government does not have any obligation or has the capability to protect the investors and so they should provide enough precaution to prevent scams to the new users.

[AtheistAKASaneBrain]

I think this is well known to people who have been in the crypto world for any length of time.  Scams are everywhere.  You just have to do your research.  Of course, any investment is a risk, whether it's legit or not.  At least the UK isn't shutting it down and is allowing people to decide for themselves how much they're willing to risk.

Yes you are right. At them moment they are not subjecting ICOs to control as they deem far too few people are participating in them.

This is BULLISH for bitcoin. Regulation for ICO's are actually good. We can't let all these scammers keep stealing BTC from newbies. Sure, everyone should be responsible for their own actions, but is it ok to just sit back and see how clueless noobs get their BTC stolen from them by all these weasels? I don't like regulations, but when something reaches this point, it must be stopped.

When people see ICO's arent safe, they will invest on BTC instead of trying to get rich overnight with all the random ICOs.

[JollyGood]

This is BULLISH for bitcoin. Regulation for ICO's are actually good. We can't let all these scammers keep stealing BTC from newbies. Sure, everyone should be responsible for their own actions, but is it ok to just sit back and see how clueless noobs get their BTC stolen from them by all these weasels? I don't like regulations, but when something reaches this point, it must be stopped.

When people see ICO's arent safe, they will invest on BTC instead of trying to get rich overnight with all the random ICOs.

You are absolutely right in that scammers must be stopped from ripping people off through ICOs but any kind of regulation will need to be well thought out otherwise investors and those seeking investment might avoid ICOs completely or might even decide to conduct non-regulated ICOs at risk of being arrested.